The Level of Inventory of a Manufactured Product Has Increased

question 108

Multiple Choice

The level of inventory of a manufactured product has increased by 7,000 units during a period.The following data are also available: What would be the effect on income from operations if absorption costing is used rather than variable costing?

• A)$42,000 decrease
• B)$42,000 increase
• C)$52,500 increase
• D)$52,500 decrease

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Definitions:

Emergency Call

A phone call made to request immediate assistance from emergency services, such as police, fire, or medical teams.

Practitioner

A professional engaged in the practice of a particular occupation or profession, often within the healthcare sector.

Second Call

In emergency services, a subsequent notification for assistance or action after the initial call.

Long Wait

An extended period of time spent anticipating or awaiting something, often causing inconvenience or dissatisfaction.